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PROPOSED LAW NO. 77 /X

Exhibition of Motives

The Grand Options of the Plan for 2007 present a balance of the governing action

in 2005-2006 and identify the main policy measures approved and

implemented during this period of governance, in accordance with the five options

strategic approved in GOPs 2005-2009:

For 2007, in those options, four priority axes are identified that

consubstantiate a development strategy for Portugal, consistent with the

guidelines advocated in other medium-and long-term policy instruments,

specifically the National Plan for Growth and Employment (PNACE) and the

Stability and Growth Programme (PEC).

The priority axes in which the intervention measures for 2007 are to be found are:

a) The consolidation of public finances

b) The modernization of public administration

c) The valorisation and qualification of human resources

d) Technological and scientific development, innovation and competition

In the public policies pursued in 2005-2006, there was the concern of

selectivity, with a view to winning structural delays in some areas and creating

conditions for the sustained development of the Country.

The investment strategy will focus on strategic sectors, duly

articulated with the objectives of the Lisbon Strategy and with the Framework of Reference

National Strategic (QREN)-for the period 2007-2013-in such a way as to place Portugal,

in the medium term, in real convergence with the remaining countries of the European Union.

The Grand Options of the Plan for 2007 have been submitted to the Council's opinion

Economic and Social and the said opinion has been taken into account in the drafting of the document

final now submitted for approval.

Thus:

Under the terms of the paragraph d) of Article 197 (1) of the Constitution, the Government presents to the

Assembly of the Republic the following proposal for a law:

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Article 1.

Subject

The Grand Options of the Plan for 2007 are approved.

Article 2.

Strategic framework

The Big Options of the Plan for 2007 are to be found in the development strategy

economic and social of the country defined in the Programme of the XVII Constitutional Government, in the

Major Options of the Plan for 2005-2009, in the National Action Plan for the

Growth and Employment (PNACE) and in the Stability and Growth Plan (PEC).

Article 3.

European context

Portugal should strengthen its role in European construction by applying the

Lisbon strategy, implementation of the new funding period of the funds

community within the framework of the National Strategic Reference Framework and the exercise of the

Presidency of the Council of the European Union

Article 4.

Big Plan Options

1-The Big Options of the Plan for 2007 present the balance of the governing action

in 2005-2006 and the measures that come to fruition, for the next year, the guidelines

recommended in the medium-and long-term instruments referred to in Article 2.

2-The main policy measures for 2007 are to be found in the following four axes

priority of intervention:

a) Consolidation of public finances with a trajectory of correction of

macro-economic imbalances, combined with the relaunch of the

economic growth and employment, in line with the Programme of

Stability and Growth;

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b) Modernization of the Public Administration, strengthening the institutions and

improving the state's relationship with citizens, through reorganization

structural of institutions, of debureaucratization, of simplification of

processes, modernization and management and relaxation of modes of

functioning;

c) Qualification of human resources as a response to social inequalities, à

lack of opportunities, the worsening unemployment, through the launch

of initiatives that promote qualification and vocational training,

strengthening the training offer for young people;

d) Scientific and Technological Development, Innovation and Competition, as

strategy to diversify the productive structure and increment on the scale of

value the national production.

3-The investment priorities set out in the Major Plan Options for 2007

will be contemplated and compatibilised in the framework of the State Budget for

2007.

4-In the year 2007, the Government will act in the legislative, regulatory framework and

administrative, so as to realize the realization, in each of the areas, of the

targets set out in the Major Options of the Plan for 2005-2009.

Article 5.

Final disposition

It is published in annex to this Law, of which it is an integral part, the document of the

Big Plan Options for 2007.

Seen and approved in Council of Ministers of June 8, 2006

The Prime Minister

The Minister of the Presidency

The Minister of Parliamentary Affairs